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Depending on what credits you claimed, your refund might be on a different schedule. For example if you have Earned Income Credit or Additional Child Tax Credit, those are automatically held until at least Mid-February even if you filed in January.
But OP said they filed in April so that shouldn't be the issue, right?
You're right, I missed that part. In that case it's probly just normal processing time. The 21 days is more of a guideline than a rule these dyas.
Don't stress too much about Tax Topic 152 - it's basically just the IRS's generic "we're processing your refund" message that shows up for most people. Since you filed electronically and it's only been 15 days, you're still well within the normal timeframe. The fact that you claimed the Child Tax Credit does add some processing time since they have to do additional verification to prevent fraud, but that's totally routine. I'd give it another week or so before getting concerned. The WMR tool only updates once a day (usually overnight), so checking multiple times won't show any new info. If you hit 21+ days with no update, that's when I'd consider calling or looking into other options to get more details about your return status.
Don't forget to look into cost segregation for your rental property! Instead of depreciating everything over 27.5 years, you can potentially break out components like appliances (5 years), carpeting (5 years), landscaping (15 years) etc. This accelerates your depreciation deductions in the early years. Also, take lots of "before" pictures and document everything. The IRS loves to challenge rental property deductions so having good records is crucial. I've been audited twice on my rental properties and good documentation saved me both times.
Is cost segregation worth it for a smaller property? I've heard the studies can be expensive. At what property value does it start making sense to do this?
Cost segregation definitely makes more sense as property values increase, but there are now more affordable options for smaller properties. As a rough guideline, properties valued at $400,000+ can usually benefit enough to justify the cost, but it depends on your specific situation. Some tax software now includes simplified cost segregation tools that are much more affordable than the traditional engineering-based studies. These can work well for single-family or small multi-family properties. The higher your tax bracket, the more valuable the accelerated depreciation becomes, so that's another factor to consider when deciding if it's worth it.
Make sure you understand the "placed in service" rules for your rental property. You can't start taking depreciation until the property is actually ready to be rented. If you're doing major rehab, depreciation starts when the property is habitable and you're actively trying to rent it - not when you first got the property. Also watch out for the passive activity loss limitations depending on your income level. If your rental shows a paper loss because of depreciation but your income is above certain thresholds, you might not be able to deduct those losses against your other income without some planning.
Thanks for mentioning the "placed in service" timing - that's something I was confused about! So even though I own the property now, I can't start depreciating until after all the rehab is done and I'm actively trying to find tenants?
Exactly right! The "placed in service" date is when the property is ready and available for rent, not when you acquire it. So if you're doing major rehab work, you'll need to wait until the property is in rentable condition before you can start claiming depreciation. However, don't forget that the improvement costs you're putting into the rehab will become part of your depreciable basis once the property is placed in service. So while you can't depreciate during the rehab period, those improvement costs aren't lost - they get added to your basis and then depreciated over the 27.5 year schedule starting from your placed-in-service date. Keep detailed records of all your rehab expenses separated by repairs vs improvements, as @a54173a88722 mentioned earlier. This documentation will be crucial when you're ready to start your depreciation schedule.
Has anyone used TurboTax for calculating and paying quarterly estimated taxes on capital gains? I'm in a similar boat as OP and wondering if its worth paying for.
I use TurboTax and they do have a feature for estimated tax payments. It's decent but honestly their guidance on gifted stock basis is pretty limited. Their calculator is fine once you have the right numbers, but figuring out those numbers can be tricky with gifted securities.
Just went through this exact scenario last year when I sold some Microsoft stock my dad gifted me. One thing that really helped was keeping detailed records of everything - the original purchase date, price, and gift date. The IRS may ask for documentation to verify the cost basis, especially with older gifted stock. Also, don't forget about state taxes! Some states treat capital gains as ordinary income while others have preferential rates. Make sure you're calculating estimated payments for both federal and state if your state has income tax. For the quarterly payments, I'd recommend erring on the side of caution and making a payment for the quarter when you sold. Even if you end up overpaying, you'll get a refund when you file. Much better than dealing with underpayment penalties later!
anyone else notice the website is down every night from like 11pm-5am? super annoying
I'm in the same situation - filed my KY taxes about 2 weeks ago and still nothing showing up on their system. From what I've researched, Kentucky's processing times have been really slow this year. Even though they update daily, it can take 4-8 weeks for the refund to actually show up as processed. The federal system is just way more efficient than most state systems unfortunately. Hang in there!
Giovanni Conti
17 Has anyone tried calling the IRS first thing when they open at 7am? I've heard that's the best time to get through without an excessive wait.
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Giovanni Conti
ā¢2 I've had good luck calling right at opening time. The trick is to call at 7am Eastern time regardless of what time zone you're in. If you're on the west coast, that means calling at 4am your time, which sucks but often means only a 10-15 minute wait instead of hours.
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Ravi Gupta
I've been dealing with IRS payment plan issues myself and found that clearing your browser's cache and cookies specifically for IRS.gov can sometimes resolve these system errors. Also, make sure you're using the correct URL - go directly to irs.gov and navigate to the payment plan section rather than using bookmarks or search results, as sometimes you can end up on outdated pages. Another thing to check - if you've moved recently or had any changes to your filing status, that can sometimes cause eligibility issues with the online system. The IRS database doesn't always sync properly between different systems. If all else fails, you can also try visiting a local IRS Taxpayer Assistance Center in person. They can often resolve these technical issues on the spot and set up your payment plan immediately. You'll need to make an appointment first, but it's usually much faster than waiting on hold.
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